HOME DEPOT TAKES TO THE WATER

Indeed, the uncertain definition is partly why nothing has been agreed as of mid-June. Arguably – and there have been plenty of disagreements, the scope of infrastructure goes far beyond the physical improvements of most concern to the ports community.

The intersection of funding roads, rail, bridges and ports with spending in the more “social” category fits into broader definitions of infrastructure supported by some factions in Congress. This year, in the world of shipping, the whole “ESG” topic has exploded; not a week goes by now without multiple webinars (and soon, real in-person conferences, I hope) on Environment, Social, Governance etc.

For commercial maritime participants, much of the attention has been on “E”- issues related to the path towards lower emissions, a discussion intertwined with uncertainty on what future fuels can propel ships, at scale. Throughout the business, pilot projects abound – each one having an infrastructure component; the networks for fuels distribution will be a critical factor in determining the success, or not, of their roll-out to the maritime world.

The Republicans and Democrats are not discussing such things explicitly, but the “green economy” backdrop on Capitol Hill provides a hint of the Administration’s likely direction (and maybe, support in the form of monetary allocations and grants) on fuel matters.

In the ESG discussions, pundits have often thrown the ball back to “end users” (in this context, the cargo owners) whose names are well known (unlike shipping companies) and are therefore also sensitive to social (the “S”) currents. Yet big cargo owners’ links to shipping in supply chains are often tortuous so the there is no direct social pressure on shipping companies- and on the ports that serve them. At least, not yet.

GAME CHANGER?

One “game changer”, maybe, comes with the news that Home Depot, a giant chain of superstores offering hardware, tools and appliances, will be directly chartering at least one vessel. At this point, I won’t call this a trend, but I would say that I am watching carefully, hoping to observe the relationship between this household brand, and the owners of a vessel.

As voyage details become known, destination ports for the ship (which presumably will load containers in Asia for a journey over to the States) may also find themselves in the spotlight. Home Depot’s move may be a one-time thing, but if other cargo interests take similar steps – getting closer to the actual vessels in their supply chains, the infrastructure surrounding ports will suddenly get a whole lot more encompassing.